Annual demand for a product is 40,000 units. the product is used at a constant rate over the 365 days the company is open every year. the annual holding cost for the product is estimated to be $2.50 per unit and the cost of placing each order is $125.00. if the company orders according to the economic order quantity (eoq) formula, then its optimal order size for this product would be:

The optimal order size would be 2,000

Explanation:

The Economic Orded Quantity minimize the cost of inventory, considering the annual demand, the cost of holding the inventory in the company and the cost for each order.

D = annual demand=40,000

S= setup cost = ordering cost=125

H= Holding Cost=2.50

match each type of restriction with one of its effects.

a. land-use laws

b. labor laws

c. banking regulations

a. controlled development of towns and cities

b. protection of young workers

c. greater financial stability